The Pacific Alliance is celebrating a decade, as Ecuador comes close to being an Associate Country | Economy | News

The bloc, which accounts for 41% of the total GDP of Latin America and the Caribbean, is made up of Chile, Peru, Colombia and Mexico.

The Pacific AllianceMade by Chile, Peru, Colombia, and MexicoAnd to any Ecuador Seeking to join as an associate state, it meets on Wednesday Decade Since the bloc met at the first summit on April 28, 2011, in Lima.

According to figures and data from the alliance, in this decade, the cluster has implemented more than 180 promotional activities with more than 3500 entries from exporting / receiving companies from the four countries in Icon events (Business Macro Roundtables, LAB4 Forums, etc.), in addition to generating more than One billion dollars in business opportunities.

For example, in 2020, three virtual business tours have been held with the United Kingdom, Central America, East Asia and Oceania.

276 exporters from the bloc participated and were able to contact about 150 importers from these regions of the world. Transactions totaled at $ 105 million, as a result of spot agreements (concluded at the same meeting) of $ 6.4 million, plus twelve-month business projections of $ 98.6 million.

What is the Pacific Alliance and why is it important to the Ecuadorian economy

Pacific Alliance, which has a population 230 million people, Represent 41% of the GDP of Latin America and the Caribbean; It is currently the eighth export powerhouse in the world, with approximately $ 627,000 in exports. In addition, it represents 60% of the trade And the 42% of foreign direct investment inflows Area.

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It currently has 59 observer countries from five continents, And 5 candidate countries for an associated country, in addition to Ecuador (Australia, Canada, South Korea, New Zealand and Singapore).

Meanwhile, despite the indication in 2019 that the process of integrating Ecuador as a part of the Pacific Alliance will begin after this bloc enters into agreements with Canada, Australia, New Zealand and Singapore, negotiations with the four countries, which began in June 2017, four years ago. Many meetings were held, and they have not yet been concluded.

Ecuador’s intention is to move from an observer state to a state party, a prospect that the four members welcome: Peru, Colombia, Chile and Mexico, including the United States.

The laws stipulate that a country cannot enter the commercial bloc unless it has signed bilateral free trade agreements with each member state.

Ecuador already has agreements with Colombia, Chile and Peru, and is currently negotiating with Mexico. Upon achieving this, it will become an affiliate of the coalition, which is a precursor to becoming a full member.

According to figures released by the Guayaquil Chamber of Commerce, in 2018, total exports (oil and non-oil) from Ecuador to the four represented Alliance countries were represented. $ 4,062 millionThat is 19% of total exports. Among the main products that Ecuador exported to the Pacific Alliance that year were plant extracts, oils, canned fish, minerals, leather, plastics, rubber, chemicals, pharmaceuticals, bananas, shrimp and cocoa.

Meanwhile, in 2020, non-oil exports to the four bloc countries of Ecuador totaled $ 1.45 billion, according to Fedexpor numbers.

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Ecuador began joining the Pacific Alliance in Chile

On December 11, 2020, through the Santiago Declaration, an instrument that arose as a result of the fifteenth summit of the Pacific Alliance, which was held roughly, Presidents of Chile, Sebastian Pinera; Colombia, Evan Duque; Mexico, Andres Manuel Lopez Obrador; And Peru, Francisco Raphael Sagasti, Signed the terms of reference that will guide negotiations with Ecuador.

The entry of Ecuador into the bloc will not happen during the period of government Lenin Moreno, Who will leave the executive branch on May 24.

This adhesion was one of the points that were agreed upon between the president-elect, Guillermo LassoAnd the And Duque, who is the president for the time From the Pacific Alliance, after the first meeting they both held last week in Colombia, prior to the formal acquisition.

“I repeat not only the interest, but all the help from Colombia even during this presidency for the time, We can guarantee Ecuador’s access to this important alliance, which has always had to rely on Ecuador from its very first moment. Today, we see this process very close and we want it to take place in 2021, Duque said. (I)

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